Committee on Financial Services to Examine SEC's Money Market Fund Rule Proposal

The House Financial Services Subcommittee on Capital Markets will hold a hearing to examine the SEC's rule proposal to further reform the regulation of money market mutual funds ("MMFs") on Wednesday, September 18. Among the reforms proposed is a requirement that "prime" MMFs adopt a floating net asset value per share instead of a stable $1.00 share price, as well as a proposal to allow MMF directors to impose liquidity fees and redemption gates in times of stress. The meeting will be a one-panel hearing with five witnesses, including representatives from the National Association of State Treasurers, the Systemic Risk Council and the U.S. Chamber of Commerce.

See: Committee Memorandum of the Hearing. See also:SEC Proposes in the Federal Register Money Market Fund Reform and Amendments to Form PF; Comments Due September 17th (with Lofchie Comment) (June 19, 2013); SEC Proposes Money Market Fund Reforms (June 6, 2013); SEC Open Meeting: Money Market Fund Reform (with link to Delta Strategy Description of SEC Meeting) (June 5, 2013).